Those making transactions with Bitcoin and other cryptocurrencies in China can receive a fine or go to jail. The Chinese authorities said that crypto assets are on the same level as pyramid schemes and other frauds.
The Supreme Judicial Court of China recently stated that trading Bitcoin and other cryptocurrencies involve acquiring capital illegally. The authorities of the Asian country said that transactions with crypto assets are illicit and carry severe penalties.
A draft law with some amendments to another provision of the Central Bank of China will enter into force in March.
Those conducting large money transactions could spend from 3 to 10 years in prison or pay fines of between USD 8,000 and 80,000 worth of yuan (CNY).
Likewise, those advertising prohibited activities through any means risk receiving penalties. In other words, nobody can use the Internet, television, print media, or messaging services to publicize cryptocurrencies.
The authorities also establish that pyramid schemes are illegal, and knowing about them would imply the imputation of complicity. The Chinese court will punish those issuing bonds or shares fraudulently, absorbing public deposits illegally, or raising capital through pyramid schemes.
The government of China has historically attempted to prohibit activities related to cryptocurrencies in different ways. After banning the mining of Bitcoin and other cryptocurrencies, they described that business as obsolete regarding policies to reduce environmental impact.
However, they recently launched a centralized platform for non-fungible tokens (NFT). That indicates that the Chinese government is not totally against those technologies since citizens can use them freely.
The Community Reacts with Contributions in Bitcoin to Ukraine
A growing number of people have turned to Bitcoin to help fund the Ukrainian military in the conflict with Russia. Data from blockchain analytics firm Elliptic indicates that non-governmental organization Come Back Alive has received over USD 400,000 worth of BTC.
The above NGO provides military equipment, medicines, and food to the local army. Besides, a mysterious donor recently sent 80 BTC to the charity supporting the Ukrainian military.
Cyber Alliance, a community of Ukrainian cyber activists, has received about USD 100,000 worth of BTC, Ether (ETH), and Litecoin (LTC).
Russian rock band Pussy Riot, known for its anti-government protests, created UkraineDAO alongside Trippy Labs and PleasrDAO to help the victims of the war. The money raised from the sales of ten thousand NFTs of the Ukrainian flag will go to the NGO Proliska and the Return Alive Foundation.
The US Department of Justice Charges the Founder of BitConnect
A federal grand jury recently indicted BitConnect founder Satish Kumbhani of defrauding his investors of about USD 2.4 billion.
The US Department of Justice reported Kumbhani committed wire fraud, manipulated prices, operated a money transmitter illegally, and laundered funds for a global Ponzi scheme.
The law agency said he traded cryptocurrencies using the funds of his victims. He paid previous investors with the funds that he received from subsequent investors.
US Deputy Attorney General Kenneth Polite Jr. stated that criminals still use cryptocurrencies internationally. However, several studies have revealed that those illegal activities are more frequent with fiat money.
By Alexander Salazar
